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Following is a question by the Hon Kam Nai-wai and a written reply by the Secretary for Transport and Housing, Ms Eva Cheng, in the Legislative Council today (April 6):
Question:
Recently, some residents of public rental housing (PRH) estates and Home Ownership Scheme (HOS) courts in quite a number of districts have indicated that The Link Management Limited (The Link) has suddenly ceased to lease the parking spaces in its car parks to them recently. In reply to my enquiry, The Link said that such cessation was made in order to comply with the lease conditions of the car parks (including restrictions on the status of the tenants and the numbers of various types of parking spaces, etc). On the other hand, should The Link wish to lease the parking spaces in its car parks to non-residents of the PRH estates concerned (non-residents), it has to apply to the authorities for waiver of the relevant government lease conditions and pay waiver fees. In this connection, will the Government inform this Council:
(a) whether it has assessed if the current mismatch in the demand and supply of parking spaces (e.g. the absence of parking spaces for motorcycles and goods vehicles in some districts while the residents are not allowed to use the nearby car parks of The Link) is caused by the actual needs not having been considered in the first place during the planning of the number of parking spaces in various districts;
(b) if the planning blunder in (a) is proved to be true which has caused members of the public with parking needs to suffer, why the authorities have not, for the convenience of the public, rectified such planning blunder proactively, and whether the authorities attach importance to the income of waiver fee payable by The Link; how the waiver fees are calculated, and whether reference will be made to the operating expenses of similar car parks (such as those managed by the Hong Kong Housing Authority (HA));
(c) regarding the 178 car parks in public housing estates/HOS courts that HA sold to The Link Real Estate Investment Trust, of the respective numbers of parking spaces for private cars, motorcycles, light goods vehicles and heavy goods vehicles in these car parks, the respective numbers of the various types of parking spaces currently leased to eligible persons specified in the government leases and to non-residents, the number of vacant spaces, the occupancy rate, and, where applicable, the ceilings of the various types of parking spaces to which permanent waivers of planning permissions have been granted, the expiry dates of temporary waivers of planning permissions which are still valid at present, and the expiry dates of temporary waivers of planning permissions which have become invalid, with a breakdown of the figures and information by the following categories, 18 District Council (DC) districts, and the names of the car parks:
(i) the car parks to which permanent waivers of planning permissions have been granted, thus allowing surplus parking spaces to be leased to non-residents;
(ii) the car parks to which the temporary waivers of planning permissions (allowing surplus parking spaces to be leased to non-residents) granted are still valid;
(iii) the car parks to which the temporary waivers of planning permissions (allowing surplus parking spaces to be leased to non-residents) granted have become invalid; and
(iv) the car parks to which both permanent and temporary waivers of planning permissions have not been granted;
(d) of the present number of waiver applications which the authorities have received from The Link, the names of the car parks involved, the numbers of the various types of parking spaces, the estimated rental value under the existing leases, the estimated new rental value after the granting of the waivers, for how long such applications have been submitted, and among the various types of parking spaces of The Link, the estimated number of surplus parking spaces available for leasing to non-residents, together with a breakdown by 18 DC districts;
(e) given that in reply to an enquiry from a Member of this Council in January 2010, the authorities indicated that The Link had applied to the Lands Department for short-term waivers in respect of the car parks in 15 housing estates, of the latest progress of these applications; the current progress of the Government's follow-up on, as well as the vetting and approving of, other waiver applications submitted by The Link;
(f) given that The Link told the Kwai Tsing and Tai Po DC that the Lands Department "has set the waiver fee at a level equivalent to 85% of the income at full occupancy within the waiver period", how the rate of 85% is determined; why the waiver fee is calculated on the basis of "full occupancy within the waiver period", instead of the actual occupancy rate;
(g) whether it knows the number of special purpose vehicles, such as school buses, school private light buses and rehabuses, etc. parked at the parking spaces for goods vehicles in the car parks of The Link at present, and whether these vehicles are not permitted to park at the parking spaces for goods vehicles of The Link under the relevant lease conditions;
(h) how the authorities plan to deal with the problem that "some drivers are unable to find parking spaces for their vehicles while some parking spaces are left vacant", and how the authorities will make arrangements regarding the parking of the vehicles in (g); and
(i) whether the authorities will consider dealing with the relevant land lease problems in one go and amend afresh the land leases of the relevant car parks according to the demand for parking spaces in various districts, so that The Link is not required to submit waiver applications on a regular basis?
Reply
President,
Before the divestment of 180 commercial and carparking facilities to The Link Real Estate Investment Trust (The Link) in November 2005, the Hong Kong Housing Authority (HA) looked into the leasing status of the carparks concerned. In the case where the demand of the local residents for carparking spaces in particular estates was not high, where there was no objection from local residents of the estates to the letting of surplus carparking spaces to non-residents and there were genuine demand from residents of the adjoining estate or Home Ownership Scheme (HOS) court for these carparking spaces, the HA, would apply to the Town Planning Board (TPB) for planning permission in accordance with the prevailing legislation and procedures concerned and to the Lands Department (LandsD) for necessary waivers in accordance with the stipulations under the relevant land leases as appropriate so as to let the surplus carparking spaces to non-residents, including residents of the adjoining estates or HOS courts.
Premised on the above principles, the HA has applied to the TPB for planning permissions and the LandsD for necessary waivers for those relevant carparks before the divestment of commercial and carparking facilities to The Link. However, just as under the current arrangements, the relevant planning permissions and waivers concerned were time-limited.
Since the divestment of the carparks concerned to The Link in 2005, The Link is the owner of those carparks. Should The Link find it necessary to let its carparking spaces to non-residents, or to convert the use of some of its surplus carparking spaces for parking other types of vehicles, it should apply to the TPB for planning permissions and the LandsD for necessary waivers in accordance with the prevailing legislation and procedures concerned as appropriate under the established procedures.
In fact, the Housing Department (HD) has repeatedly reminded The Link Management Limited (LML) through various channels, including in writing to the LML and through various operational contacts with the LML, of the requirement to apply to the LandsD if it would like to continue letting the carparking spaces to non-residents upon the expiry of the waivers. The HD also requested the LML, in making its decision, to take into full account the demand for different types of carparking spaces from local residents of the estates, and residents of the adjoining estates or HOS courts.
With the input from the LandsD, the Planning Department (PlanD) and the Transport Department (TD), my reply to the nine parts of the question is as follows:
(a)&(b) In planning and developing public housing estates and HOS courts, the HA, after making reference to the then prevailing standards of carparking facilities stipulated in the Hong Kong Planning Standards and Guidelines as well as in consultation with the TD, determined the carparking facilities to be built for the public housing estates or HOS courts concerned. Should the parking facilities of public housing estates or HOS courts be located outside their boundaries, the HA would provide in a designated nearby carpark a stipulated number of parking spaces for private vehicles or/and goods vehicles for the use of residents of the estates/courts concerned. Subsequently, the relevant arrangements on parking space would be duly reflected in the lease conditions when drawing up the land lease of the relevant housing estates. The LML is not required upon taking over the estate carparks, to apply for waivers for letting these carparking spaces to residents of the specified estates/courts. The rest of the carparking spaces in the estate carparks were intended for the exclusive use of local residents of the housing estates only. However, should the HA find that the demand of estate residents for these carparking spaces was not high and there were surplus carparking spaces, the HA, for the optimal use of resources, would apply to the TPB for planning permissions and to the LandsD for necessary waivers as appropriate so as to let the surplus carparking spaces to non-residents, including residents of the adjoining estates or HOS courts.
The above arrangements were made beyond the scope of the planning standards and in the light of the prevailing circumstances at the time for the optimal use of resources. Given the social and economic conditions may change over the years, the actual demand for different types of carparking spaces from residents of individual estates would vary from time to time. As such, it is a flexible and proper approach to cope with the demand for carparking spaces in different periods of time by way of acquiring the necessary planning permissions/temporary waivers. This approach not only ensures the priority use of the carparking facilities concerned by the local residents, but also allows for a flexible and responsive adjustment in a timely manner to any changes in the demand for carparking spaces that may take place from time to time from the local residents or from the adjoining estates or HOS courts.
The HA has been and is still using this approach to deal with surplus parking spaces in its carparks and it is in line with the approach for handling divested carparks.
The use of each carpark divested to The Link must comply with the restrictions under the relevant land leases. In general, it is stipulated in the land leases of The Link's carparks that carparking spaces could not let to non-residents other than those specified in the land leases. However, The Link, with reference to the actual situation of individual estate carparks, may apply to The LandsD for temporary waivers to waive the restriction regarding the use of carparking spaces in the land leases.
Since its listing in 2005, The Link is a private organisation operating under commercial principles. The Link can earn revenue from the temporary waivers which waive the restriction regarding the use of carparks in the land leases. The LandsD will process The Link's waiver applications according to its established procedures. When a temporary waiver is issued, the LandsD will incorporate appropriate terms and conditions, including payment of administrative charges and waiver fees. The basis for calculating the waiver fee is detailed in the reply to part (f) as below.
Besides, the LandsD has put in place an appeal mechanism. Should The Link disagree with the LandsD's assessment on the proposed waiver fee, it may submit an appeal to the LandsD through the established mechanism with relevant justifications for the LandsD's consideration.
(c) According to the Offering Circular of The Link, as at March 31, 2005, about 10% (i.e. about 5 000) of the more than 50 000 monthly tenants of the carparking facilities to be divested were not local residents of the estates concerned. Following the listing of The Link, and given the changes in economic climate and The Link's own considerations, the situation may have changed.
As for the carpark facilities under The Link, according to the PlanD's information, 12 carparks obtained permanent planning permissions; 12 carparks obtained temporary planning permissions which are still in effect; 122 carparks obtained temporary planning permissions but they are all now expired; and 32 carparks do not have any planning permission.
The Link is a private organisation which is entirely independent of the Government and the HA. The daily operation and management of its properties are taken up by the LML, with no participation by the Government and the HA. Therefore, the Administration does not hold any of the present leasing information of the carparks under The Link, including the types of monthly tenants, distribution of carparking spaces, number of vacant carparking spaces and letting rate.
(d)&(e) In the reply to the enquiry of the Legislative Council Panel on Housing about the operation of the carparks of The Link in January 2010, the Administration stated that The Link was applying to the LandsD for waivers for the carparking spaces in its 15 carparks so that it could let some of the carparking spaces to non-residents. According to the LandsD, The Link withdrew its applications for three of those carparks concerned in mid March 2011 while the LandsD approved and offered the proposed terms of waiver for two carparks to The Link in October and December 2010 respectively. However, The Link responded that the waiver fees to be charged were too high but it has not made any appeal submission to the LandsD. For the remaining 10 carparks, The Link is dealing with the relevant planning applications and objections from residents to its waiver applications.
The Link subsequently applied to the LandsD for other temporary waivers to convert the use of some carparking spaces and to let some carparking spaces to the residents of the adjoining estates or courts. The Link eventually confirmed in end 2010 that its waiver applications involved a total of 119 carparks, with some 1 600 carparking spaces. The Link revealed to the LandsD that the number and types of the said carparking spaces had been changed between April 2009 and end December 2010. The said carparking spaces were also let to residents of the adjoining estates or courts. The LandsD is processing these waiver applications, which will be of a retrospective nature.
Meanwhile, according to the LandsD, The Link has also applied to the LandsD for temporary waivers in respect of some 3 700 carparking spaces in 122 carparks so as to change the number and types of some carparking spaces and to let some of the carparking spaces to residents of the adjoining estates or courts with effect from January 2011. The LandsD is consulting relevant government departments' views on this batch of waiver applications. Of these applications for temporary waivers, the one for the carpark in Cheung Fat Estate in Kwai Tsing had been approved and the proposed terms of the waiver was offered to The Link in end January 2011. In March 2011, The Link paid to the LandsD relevant fees for this temporary waiver application. The LandsD understands that The Link intends to lodge an appeal against the wavier fees concerned. The LandsD, however, has yet to receive any formal waiver fee appeal submission from The Link.
The LandsD is now making every effort to process the remaining applications for temporary waivers. According to the LandsD, The Link intends to further revise the number of carparking spaces in its applications but The LandsD has yet to receive from The Link the latest information.
(f) According to the LandsD, its principle of determining the waiver fees is, in general, to reflect the enhancement in the value of the property after the relevant lease restriction is waived. When processing The Link's waiver applications for temporarily waiving the lease restriction regarding the use of carparking spaces, the LandsD will assess the waiver fees based on the number of carparking spaces applied for by The Link, i.e. the additional number of carparking spaces which The Link deems as lettable.
(g)to(i) According to the Road Traffic Ordinance, the parking spaces for goods vehicles are for the parking of goods vehicles only, but not other types of vehicles. In general, the parking spaces for goods vehicles stipulated in the land leases are for the parking of goods vehicles only. In the waiver applications submitted by the LML in end 2010, they are seeking permission to allow parking of special purpose vehicles including school buses, nanny vans and rehabuses in some 550 parking spaces for goods vehicles. As mentioned in the reply to parts (d) and (e) above, the LandsD is awaiting the updated information on number of carparking spaces from the LML for further processing of its applications.
In fact, as mentioned in the reply to parts (a) and (b) above, given the social and economic conditions may have changed over the years, the actual demand for carparking spaces from local residents of individual estate may vary from time to time. Therefore, it is a flexible and proper approach for The Link to apply to the LandsD for temporary waivers to amend the stipulations in the land leases to address the demand for carparking spaces in different periods of time. This approach not only ensures the priority use of the carparking facilities concerned by the local residents, but also responds flexibly and in a timely manner to any changes in the demand for carparking spaces in different periods of time from the local residents or from the adjoining estates or HOS courts.
We understand that the LML is applying to the LandsD for the necessary waivers. The LandsD is now making every effort to follow up the LML's applications expeditiously, and to consult relevant government departments' views on such applications to ensure that resources are effectively utilised; that the current demand from residents of the adjoining estates and HOS courts for carparking spaces is reasonably satisfied; and that any inconvenience caused to the public be minimised as far as practicable. During the period of processing of the LML's waiver applications, the LandsD has no plan to carry out enforcement actions against leasing out of the carparks concerned.
Ends/Wednesday, April 6, 2011
Issued at HKT 13:25
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